Godawari Power And Ispat limited has executed a facility agreement to provide an inter-corporate loan of Rs 40 crore to Deccan Gold Mines Limited (DGML). The agreement was executed on June 5, 2026, and the loan is being drawn from the surplus funds available with Godawari Power And Ispat limited.
The inter-corporate loan carries an interest rate of 12% per annum on a quarterly compounding basis. The interest is payable not later than seven days before the end of each respective quarter during the loan tenure. The facility has a duration of 12 months from the date of execution.
DGML will utilise the loan proceeds primarily for financing the completion and development of the Altyn Tor Gold Project being undertaken in the Kyrgyz Republic. The project is managed through Avellum Partner LLC, which is a subsidiary of DGML. The funds will also be allocated for other project development activities, working capital requirements, and general administrative expenses of the borrower.
The loan is secured by a pledge of 5,00,000 equity shares of Geomysore Services (India) Private Limited held by DGML. Hira Infra-tek Limited, which is a promoter group entity of the lender, holds an 8.37% equity stake in DGML. Hira Infra-tek Limited also holds a 26% interest in Avellum Partner LLC.
Godawari Power And Ispat limited holds 4,75,537 equity shares in DGML. The transaction has not been classified as a related party transaction. The disclosure was submitted by Godawari Power And Ispat limited to the National Stock Exchange of India and BSE Limited.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.